Connecticut Attorney General William Tong is expanding an inquiry into high grocery prices by sending letters to major food distributors and retailers. The inquiry found no evidence of price gouging at the retail level but will now investigate the supply chain for potential unfair profiteering. The AG also cited factors like tariffs and SNAP cuts that contribute to high prices.
In-house legal teams should review vendor and supply chain agreements for clauses related to price adjustments, cost pass-through mechanisms, shrinkflation practices, and transparency requirements. Ensure contracts include audit rights to verify cost justifications and address how external factors like tariffs, labor shortages, or regulatory changes impact pricing.
Entity
Food Distributors and Grocery Retailers
Also known as: Food Distributors and Retailers
Industry
RetailOfficial Press Release
https://portal.ct.gov/ag/press-releases/2025-press-releases/attorney-general-tong-announces-next-steps-in-grocery-pricing-inquiry
supplier grocery letter 103025.pdf?rev=19be351d33834679af15c
https://portal.ct.gov/-/media/ag/press_releases/2025/supplier-grocery-letter-103025.pdf?rev=19be351d33834679af15c0a996f52e49&hash=C10657DC6AFBC4F9DBDCD4B6DB24D9FF
groceries and price gouging letter to legis dated 10 30 25.p
https://portal.ct.gov/-/media/ag/press_releases/2025/groceries-and-price-gouging-letter-to-legis-dated-10-30-25.pdf?rev=3218324061fe43eb8bacde646ea0707f&hash=5EF41B9E3A5158D2704B94B405D21D4C
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
"five of the top food distributors"
"inquiry"
"price gouging"
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.